Published online by Cambridge University Press: aN Invalid Date NaN
Focusing on logistics and fulfillment, this chapter explains how distribution links supply to consumer expectations for speed and reliability. Amazon serves as a key example of network orchestration through centralized warehouses, last-mile solutions, and advanced routing algorithms. The chapter compares fulfillment models – store-based, warehouse-based, and hybrid – highlighting trade-offs in cost, service level, and complexity. It details inbound and outbound flows, automation, consolidation strategies, and geographic coverage design. Distribution network optimization determines the ideal number and placement of nodes, balancing transportation costs, inventory pooling, and responsiveness. Automation and AI increase speed but require significant investment. Distribution emerges as a major differentiator where small efficiency gains compound into competitive advantage.
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